WeWork, once seen as the future of the office, is reportedly considering filing for bankruptcy in New Jersey. The company has faced a series of problems, including a failed attempt to go public in 2019, the exit of its co-founder, and the impact of the pandemic as more people started working from home. WeWork’s shares fell over 40% in after-hours trading on the news. The company had been struggling since its initial public offering attempt collapsed in 2019 due to concerns about its debts, losses
, and management. Founder Adam Neumann stepped down as CEO a week before the share sale was scrapped, and the pandemic further exacerbated the company’s challenges. Despite selling off ancillary businesses, cutting jobs, and modifying leases, WeWork’s losses continued, and its stock market valuation plummeted. SoftBank has invested heavily in WeWork, and the company’s valuation has dropped nearly 98% in the past year. In August, WeWork expressed doubts about its ability to continue operations, citing challenges in a difficult operating environment.